On July 13, 1999, New Jersey Attorney General John J. Farmer, Jr. and
Insurance Fraud Prosecutor Edward M. Neafsey announced that arrest warrants
were issued for 12 individuals from New Jersey on charges of racketeering
and conspiracy to commit health care claims fraud in connection with fraudulent
personal injury protection (PIP) automobile insurance claims.

According to Neafsey, six people were arrested and will be taken to Central
Judicial Processing Court in Union County. Efforts are continuing to effect
the arrests of the remaining six persons. In addition to arrests warrants,
the Office of Insurance Fraud Prosecutor (OIFP) executed search warrants
at eight chiropractic clinics or medical billing offices, two private residences,
and also searched two automobiles seeking evidence of additional fraud crimes.

The Attorney General said the OIFP investigation, with assistance from
the Division of State Police, FBI, Union County Prosecutor's Office, Hudson
County Prosecutor's Office and Immigration and Naturalization Service, began
after his office received an anonymous letter and information from several
New Jersey-based insurance companies.

"Personal injury protection claims represent the 'health and injury'
component of automobile insurance and is one type of criminal insurance
fraud that our Office of Insurance Fraud Prosecutor is targeting,"
said Attorney General Farmer. "We are using our criminal and civil
resources to the fullest extent to identify and prosecute individuals and
entities whose swindling inflates insurance costs for honest New Jersey
citizens."

Neafsey said that the alleged ring leaders, Victor Almonte, a/k/a "Bacana,"
33, of Elizabeth, Union County; Alejandro Ventura, a/k/a "Alex,"
34, of Elizabeth; Anhuar Bandy, 36, of New Brunswick, Middlesex County,
were arrested this morning by OIFP investigators. The three were variously
charged with second degree conspiracy to commit health care fraud and racketeering.
Bail was set at $100,000/10% for Almonte, $400,000 cash for Ventura, and
$500,000 for Bundy.

"This case marks two firsts for the State of New Jersey. It is the
first organized fraud ring penetrated by undercover investigators from OIFP
and the first organized fraud ring prosecuted under the tough new health
care claims statute," according to Neafsey. "Our office intends
to utilize every tool provided by the legislature in carrying out the mission
we have been given."

The investigation began following the receipt of an anonymous tip. Several
insurance carriers were then contacted and information about the submission
of fictitious automobile insurance claims for payment of chiropractic and
related services was developed. Neafsey said that the alleged scheme involved
staging automobile accidents. Co-conspirators accepted money in exchange
for staging the accidents and referring patients to various chiropractic
clinics located throughout New Jersey.

Bandy is alleged to have owned or operated the clinics and Ventura and
Almonte served as "runners," recruiting people to participate
in staged automobile accidents, according to Neafsey. In addition to racketeering
and health care claims fraud, the defendants may also face civil charges
from the affected insurance carriers.

The Attorney General thanked the following insurance carriers for their
cooperation with the investigation: Allstate, Liberty Mutual, MDA, Parkway,
Prudential, Selective, Sentry and State Farm.

The co-defendants charged with participation in staged accidents and
the approximate amounts they are charged with stealing based on the conspiracy
to file false claims with insurance companies are:

Jessica Montalvo, 19, Newark, Essex County ($10,000 in false claims)

Jacqueline Vasquez, 19, Newark, Essex County($10,000)

Mohammed Attalla, 27, Rosselle Park, Union County($1,000)

The remaining co-defendants are being sought on the basis of arrest
warrants that were issued against them: